How do I split sale of stock in PA

[mlthomas26]

I have a client who moved from DE to PA last September.  They have sale of stock.  In the PA return, it is displaying the total amount of the sale of stock instead of what is allocated to PA.  I did split them in the PY Alloc Wks. I looked at PA Schedule D but can't find a place to make the adjustment.  Does anyone know how to do this?

[itonewbie]

Why are you allocating it.  Capital gains are sourced to the taxpayer's tax home.  If the sale occurred during PA residency, it'd be fully taxable to PA only.  Is there anything peculiar that you didn't tell us, which could affect the tax treatment?

[mlthomas26]

They moved into PA in October of 2022 from DE.  They sold stock while living both states.  I can tell by the date which is PA income but the PA return is bringing in all the stock sold not just the stock sold while a PA resident.  I am asking how do I get PA to only display PA stock sold.

Sorry if I was not clear in my original post.

[itonewbie]

Got it!

If I understand you correctly, your client sold different lots during 2022.  Part of these were sold during DE residency and the remainder after they moved to PA.

Assuming my understanding is correct, ProConnect Tax will determine the gain/loss that should flow from each sale to the respective state, not based not on the date of disposition (although you'd think it should know to use the residency periods you input for each state), but the 2-letter state abbreviation you select for the sourcing column for both of the following -

• Sales price
• Cost or other basis (do not reduce by depreciation)

It's relatively straightforward and painless.

Hope this helps.

[mlthomas26]

So I am using ProSeries Professional, so I don't see the files you indicated.  Is there a filed like that in Professional that I am missing?

[mlthomas26 · Accepted solution]

Sorry misspelled a word so wanted to clarify

So I am using ProSeries Professional, so I don't see the fields you indicated.  Is there a field like that in Professional that I am missing?

[ccarl]

Hi. In ProSeries you can split the sale on the Schedule of Gains and Losses. 

Find the stock sale on the PA Schedule of Gains and Losses (Schedule Gain/Loss).

There should be two columns at the left side of the ‘Sale or Exchange of Property’ table labeled ‘Not PA’ and ‘Part PA.’ Check the box corresponding to the sale you need to split in the ‘Part PA’ column.

The sale marked as ‘Part PA’ will show up in the next table. Enter the PA amounts for sales price, basis, and gain/loss in the appropriate columns.

The PA amounts you entered will be carried to the PA schedule D.